Court Rules MGM Off the Hook for $25 Million Gambling Loss Claim
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Takeaways:- Casinos Aren't Legally Bound to Prevent Gambling Addiction: U.S. courts, including the Third Circuit Court of Appeals, have consistently upheld that operators like MGM Resorts aren't obligated to intervene in cases of problem gambling, even when high-risk behaviors are evident.
Sam A. Antar, a New Jersey man, claimed he lost a staggering $25 million due to addiction at MGM Resorts. However, a federal appeals court sided with MGM, maintaining that casinos aren't legally responsible for voluntary gambling losses, regardless of addiction.
Antar, an avid gambler, received over 1,800 messages between June 2019 and January 2020. He alleged these repeated contacts further fueled his compulsive betting, making MGM responsible for his financial turmoil. But, in a 3-0 ruling, the U.S. Court of Appeals for the Third Circuit disagreed. They stated that under New Jersey law, casinos aren't required to stop individuals from gambling, even if signs of addiction are evident.
Senior Judge Jane Richards Roth, joined by Judges Stephanos Bibas and Cindy K. Chung, wrote that the Casino Control Act is designed to protect industry integrity, not shield players from their own decisions. The panel found no legal grounds to hold MGM liable. Antar's attorney compared MGM's hosts to pushy salespeople who exploit addiction, but the court dismissed this analogy.
Consumer fraud allegations were also dismissed. Antar claimed MGM misled him with false promotions, but the judges found no evidence of deceptive conduct or misinformation. They declared the offers did not violate the New Jersey Consumer Fraud Act.
While states like New Jersey regulate gambling operations, the legal system doesn't mandate casinos to monitor or restrict compulsive gamblers beyond state-enforced self-exclusion programs. Federal efforts, such as proposed bills to introduce "affordability checks" or restrict gambling ads, remain pending and do not alter existing caselaw.
Even with regulatory pressure like the recent fining of $8.5 million by the Nevada Gaming Commission, this decision delivers a legal win for MGM. The court made it clear: casinos cannot be held responsible for the financial outcomes of a player's voluntary gambling, regardless of personal circumstances.
- Despite the alarming claims made by Antar, the court's ruling confirmed that casinos, like MGM Resorts, aren't liable for voluntary gambling losses, even in cases of addiction.
- Encouraging further regulatory discussion, the court's decision highlighted that casinos, such as those in New Jersey, aren't obligated to monitor or restrict compulsive gamblers beyond state-enforced self-exclusion programs.
- Although federal bills proposing "affordability checks" or limiting gambling ads remain pending, the court's ruling, based on the case involving Antar and MGM, makes it clear that casinos aren't legally bound to prevent gambling addiction or can't be held accountable for the financial outcomes of a player's voluntary gambling.
